SAN RAMON, Calif.--(BUSINESS WIRE)--Apr. 10, 2012--
Chevron Corporation (NYSE: CVX) today reported in its interim update
that earnings for the first quarter 2012 are expected to be higher than
fourth quarter 2011. Upstream results are projected to improve between
sequential quarters, benefiting from higher crude oil prices and lower
operating expenses, partly offset by lower liftings. Downstream earnings
in the first quarter are also expected to be higher, reflecting improved
refining and chemicals margins, lower operating expenses, and gains on
asset sales. Foreign exchange losses in the first quarter are expected
to be higher than fourth quarter losses, most notably in the upstream
segment.

Basis for Comparison in Interim Update

The interim update contains certain industry and company operating data
for the first quarter 2012. The production volumes, realizations,
margins and certain other items in the report are based on a portion of
the quarter and are not necessarily indicative of Chevron's full
quarterly results to be reported on April 27, 2012. The reader should
not place undue reliance on this data.

Readers are advised that portions of the commentary below compare
results for the first two months of the
first quarter 2012 to full fourth quarter
2011 results, as indicated.

UPSTREAM

The table that follows includes information on production and price
indicators for crude oil and natural gas for specific markets. Actual
realizations may vary from indicative pricing due to quality and
location differentials and the effect of pricing lags. International
earnings reflect actual liftings, which may differ from production due
to the timing of cargoes and other factors.

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2011

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2012

1Q

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2Q

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3Q

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4Q

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1Q thru
Feb

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1Q thru
Mar

U.S. Upstream

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Net Production:

Liquids

MBD

482

478

453

447

450

n/a

Natural Gas

MMCFD

1,270

1,299

1,260

1,290

1,170

n/a

Total Oil-Equivalent

MBOED

694

694

662

661

644

n/a

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Pricing:

Avg. WTI Spot Price

$/Bbl

94.48

102.34

89.51

93.98

101.24

103.00

Avg. Midway Sunset Posted Price

$/Bbl

94.46

108.67

102.99

107.83

109.14

112.01

Nat. Gas-Henry Hub "Bid Week" Avg.

$/MCF

4.10

4.32

4.20

3.55

2.88

2.73

Nat. Gas-CA Border "Bid Week" Avg.

$/MCF

4.03

4.24

4.32

3.74

3.13

2.96

Nat. Gas-Rocky Mountain "Bid Week" Avg.

$/MCF

3.71

3.88

3.81

3.35

2.70

2.56

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Average Realizations:

Crude

$/Bbl

93.39

108.80

101.27

105.37

105.65

n/a

Liquids

$/Bbl

89.14

103.63

96.75

100.65

99.71

n/a

Natural Gas

$/MCF

4.04

4.35

4.14

3.62

2.70

n/a

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International Upstream

Net Production:

Liquids

MBD

1,428

1,388

1,353

1,369

1,339

n/a

Natural Gas

MMCFD

3,826

3,670

3,496

3,658

3,850

n/a

Total Oil Equivalent

MBOED

2,066

2,000

1,937

1,980

1,981

n/a

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Pricing:

Avg. Brent Spot Price 1

$/Bbl

105.43

117.04

113.41

109.35

115.07

118.60

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Average Realizations:

Liquids

$/Bbl

95.21

106.84

102.82

101.33

107.64

n/a

Natural Gas

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$/MCF

�

5.03

�

5.49

�

5.50

�

5.55

�

5.82

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n/a

1 The Avg. Brent Spot Price is based on Platts daily
assessments, using Chevrons internal formula to produce a quarterly
average.

U.S. net oil-equivalent production decreased 17,000 barrels per day
during the first two months of the first quarter, reflecting the
previously announced sale of Cook Inlet, Alaska assets at year-end 2011.
International net oil-equivalent production during the first two months
of the first quarter was comparable with fourth quarter 2011 results. As
previously announced, production at the Frade field in Brazil was
shut-in mid March, with the reservoir now under technical review. The
impact to first quarter production is expected to be approximately 5,000
barrels per day. Ongoing, the impact is estimated to be 33,000 barrels
per day that Frade remains shut-in. At this time, a production restart
date is not available. However, the companys 2012 production guidance
remains unchanged.

U.S. crude oil realizations increased $0.28 per barrel during the first
two months of the first quarter, while international liquids
realizations increased $6.31, to $107.64 per barrel. U.S. natural gas
realizations decreased $0.92 to $2.70 per thousand cubic feet, while
international natural gas realizations increased by $0.27 per thousand
cubic feet during the first two months of the first quarter.

DOWNSTREAM

The table that follows includes industry benchmark indicators for
refining and marketing margins. Actual margins realized by the company
will differ due to crude and product mix effects, planned and unplanned
shutdown activity and other company-specific and operational factors.

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2011

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2012

1Q

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2Q

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3Q

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4Q

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1Q thru
Feb

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1Q thru
Mar

Downstream

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Market Indicators:

$/Bbl

Refining Margins

U.S. West Coast Blended 5-3-1-1

17.68

19.41

14.31

14.45

18.93

19.64

U.S. Gulf Coast Maya 5-3-1-1

24.48

27.72

24.45

11.84

17.76

20.56

Singapore Dubai 3-1-1-1

7.91

9.00

10.39

8.77

10.89

9.73

Marketing Margins

U.S. West Weighted DTW to Spot

3.87

7.26

5.07

5.39

2.40

4.16

U.S. East Houston Mogas Rack to Spot

4.09

4.49

4.46

4.35

3.90

3.90

Asia-Pacific / Middle East / Africa

4.40

5.74

6.19

5.65

4.63

n/a

Actual Volumes:

U.S. Refinery Input

MBD

879

875

897

763

915

n/a

Intl Refinery Input

MBD

1,032

1,017

882

805

812

n/a

U.S. Branded Mogas Sales

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MBD

�

503

�

510

�

529

�

515

�

501

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n/a

For the full first quarter, worldwide refining margins improved compared
to fourth quarter 2011, while marketing margins decreased over the same
period.

During the first two months of the first quarter, U.S. refinery
crude-input volumes increased by 152,000 barrels per day, largely
reflecting completion of a major turnaround at the Richmond, California
refinery during the fourth quarter. International refinery crude-input
volumes were up slightly compared to the fourth quarter.

International downstream earnings in the first quarter are expected to
include a gain of approximately $200 million from assets sales primarily
in Spain, reflecting continued portfolio rationalization efforts.

ALL OTHER

The companys general guidance for the quarterly net after-tax charges
related to corporate and other activities is between $300 million and
$400 million. Due to foreign currency effects and the potential for
irregularly occurring accruals related to income taxes, pension
settlements and other matters, actual results may significantly differ
from the guidance range. Total net charges in the first quarter are
projected to be at the high end of the guidance range.

NOTICE

Chevrons discussion of first quarter 2012 earnings with security
analysts will take place on Friday, April 27, 2012, at 8:00 a.m. PST.
A webcast of the meeting will be available in a listen-only mode to
individual investors, media, and other interested parties on Chevrons
website at www.chevron.com
under the Investors section. Additional financial and operating
information will be contained in the Earnings Supplement that will be
available under Events & Presentations in the Investors section on
the website.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
FOR
THE PURPOSE OF "SAFE HARBOR'' PROVISIONS OF THE
PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

This interim update of Chevron Corporation contains forward-looking
statements relating to Chevrons operations that are based on
managements current expectations, estimates and projections about the
petroleum, chemicals and other energy-related industries. Words such as
anticipates, expects, intends, plans, targets, forecasts,
projects, believes, seeks, schedules, estimates, budgets,
outlook and similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties and
other factors, some of which are beyond the companys control and are
difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements. The reader should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
interim update. Unless legally required, Chevron undertakes no
obligation to update publicly any forward-looking statements, whether as
a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ
materially from those in the forward-looking statements are: changing
crude oil and natural gas prices; changing refining, marketing and
chemical margins; actions of competitors or regulators; timing of
exploration expenses; timing of crude oil liftings; the competitiveness
of alternate-energy sources or product substitutes; technological
developments; the results of operations and financial condition of
equity affiliates; the inability or failure of the companys
joint-venture partners to fund their share of operations and development
activities; the potential failure to achieve expected net production
from existing and future crude oil and natural gas development projects;
potential delays in the development, construction or start-up of planned
projects; the potential disruption or interruption of the companys net
production or manufacturing facilities or delivery/transportation
networks due to war, accidents, political events, civil unrest, severe
weather or crude oil production quotas that might be imposed by the
Organization of Petroleum Exporting Countries; the potential liability
for remedial actions or assessments under existing or future
environmental regulations and litigation; significant investment or
product changes under existing or future environmental statutes,
regulations and litigation; the potential liability resulting from other
pending or future litigation; the companys future acquisition or
disposition of assets and gains and losses from asset dispositions or
impairments; government-mandated sales, divestitures, recapitalizations,
industry-specific taxes, changes in fiscal terms or restrictions on
scope of company operations; foreign currency movements compared with
the U.S. dollar; the effects of changed accounting rules under generally
accepted accounting principles promulgated by rule-setting bodies; and
the factors set forth under the heading Risk Factors on pages 29
through 31 of the companys 2011 Annual Report on Form 10-K. In
addition, such results could be affected by general domestic and
international economic and political conditions. Other unpredictable or
unknown factors not discussed in this interim update could also have
material adverse effects on forward-looking statements.